Palm Talks Product Leaks

The wire service Reuters have recently posted an interesting tidbit of Palm-related news. This time around Franklin Paul of Reuter’s MediaFile department has posted excerpts from an interview with Palm CEO Ed Colligan. Discussed here are the ramifications of positive and negative online buzz, along with the double-edged sword that is product leaks.

Palm's new entry-level Centro smartphone, whether intentional or not, received more leaked spy shots and various bits of misinformation over the past few months, arguably the most since the Tungsten T "Oslo" back in 2002. Beginning in early June, the Centro and its Treo 500v stable mate were the recipients of much online chatter and numerous speculative model numbers such as Treo 690, 800p and the infamous "Gandolf" codename.

Palm (and especially Ed Colligan) really appears to have a love/hate relationship with prying eyes and speculative minds of the online mobile community, though many conspiracy-minded Palm watchers such as myself feel that at least some of the leaks are “officially” planted by Palm. In the light of this year’s Foleo cancellation and the year-long saga of the Treo 700p’s issues, it could be in Palm’s best interest to maintain a trickle of leaked product via “anonymous” tipsters. This would serve as cost-effective guerilla marketing to keep interest high in a platform and company that has taken a fair share of hits lately.

While unfortunately a bit too brief, the interview goes on to say that Ed Colligan refuses to discuss any of Palm’s future products in the pipeline. The Reuters piece even concludes by giving a nod to Palminfocenter and our friends at the PalmAddicts blog as being the definitive sources of all things Palm rumor-related.

Old Posts

Oy... That link to the leaked images of the "tungsten T 'Oslo'" back in '02 got me set off on a spree of reading old product rumors. I read an old post from PIC about the rumored T3. It's strange to read posts that are so optimistic about Palm's future (and so adamantly opposed to having WiFi on a device ["Who needs WiFi?! All you really need is BT...]).

RE: Old Posts

I agree with some of those old posts about WiFi. I have it on my Nokia e61. It is nice to have once in a while but I hardly use it. Most public hotspots are unsecured, so anything I send (like my email password) is visible to any other user. I usually prefer to use the cell radio for data.

RE: Old Posts

At that point in time, public WiFi was uncommon or expensive and data connections via cell phone seemed right around the corner. Little did we know that it would take another five years for cellular data to become a reasonable choice. And even then, BT still uses a lot of battery power.

no publicity is bad publicity...

I recall "leaks" of an impending 700p firmware patch were flying around all the forums for about a YEAR since the buggy thing was released.

Maybe that level of interest in "leaks" seemed excessive to Palm - but probably not for those customers who actually expected that they'd be able to use a bluetooth headset as Palm claimed. Since Palm seemed to be completely ignoring or dismissing their only customers of their only major product for such a ridiculously long period - that dearth of communication was offloaded to speculation in the forums. People will talk about such major investments - and if you ignore your customers to such a degree then they'll likely turn "negative" in response. Announcing the ill-timed Fooleo in the midst of this mess didn't cheer up 700p owners in the least - it's like a guy who owes you money showing off his new fancy watch, rubbing it in your face how important your relationship is to him.

As for leaking leaking of "new" devices, I'd be extremely surprised if many of these rumors and "spy" photos aren't mostly planted by Palm. Just as users were choosing whether they'd be carrying pitchforks or flaming torches over to Palm Headquarters because of their failure to address the 700p issues for nearly a *year*-- THAT'S when the "rumors" of the 755 started coming out all over the web. It seemed to serve Palm quite nicely to redirect the anger about selling the defective 700p and not fixing it over to "hope" that the Treo 755 would have reduced lag, stay connected with BT headsets, and other features a responsible manufacturer would take responsibility for in the present model rather than require a re-purchase of essentially the same device (and in some ways inferior).

And as for those with endless hope that Palm will continue developing PDAs - you can't blame them for "leaking" their Photoshop wet dreams every once in a while. Palm's the only producer of PalmOS PDAs now, and I see those "leaks" as attempts to let Palm know that people are still interested in them as a viable supplier of handheld devices. For those who liked having a camera in their PDA, Palm sez "tough luck."

===============

Mr. Colligan should probably worry more about when the "leaks" come out and nobody cares or talks about Palm anymore. The fact people are *still* very interested in Palm products after years of Palm neglecting their customers and market so badly speaks volumes to the intrinsic value of that company. How many other companies would pay-and-pay astroturf marketers to have people so interested and hopeful to see their next product(s)? Apple had zombie enthusiasts like us for years, it kept them going through all their mistakes and they seem to be doing quite well today. Mr. Colligan and crew might consider putting their energy into new innovation rather than trying to kill the messengers that keep their company afloat with such interest in their progress.

Palm should be so lucky

That people will be talking about them AT ALL twelve months from now...

>>>Handheld device maker Palm (Nasdaq: PALM) Latest News about Palm saw its stock take a hit after reporting a fiscal loss for its first quarter and issuing a weaker-than-expected forecast that suggests it is struggling to regain ground lost to rivals such as Research In Motion (Nasdaq: RIMM) Latest News about Research In Motion and Apple (Nasdaq: AAPL) Latest News about Apple and as it shifts its focus to lower-cost devices.

>>>Palm reported a net loss of US$841,000, or a penny per share, compared with a net profit Over 800,000 High Quality Domains Available For Your Business. Click Here. of $16.5 million a year ago, with restructuring expenses and stock options helping to weigh on the bottom line.

RE: Palm should be so lucky

>>>Palm also issued a weak outlook Monday. For the current quarter, it expects a loss of 1 cent to 3 cents per share on revenue between $370 million and $380 million. On an adjusted basis, it expects earnings of 6 cents to 8 cents per share.

>>>Analysts had been projecting adjusted earnings of 11 cents per share on sales of $413.5 million, according to Thomson Financial.

Why Apple's 'new Newton' will rule

>>>Of course, everything could change again in October. But right now, the only company with a prayer of succeeding in the small computer space is also the only company that hasn't even shown a prototype -- Apple.

Had history gone properly (damn The Master!), the company mentioned would have been Palm.

Palm tries to rally against the iPhone

Palm (PALM) reported disappointing quarterly results on Monday, and it came as no surprise – the smartphone maker is getting squeezed every which way.

On the low end, smartphones from Samsung and Motorola (MOT) are nibbling away market share. On the high end, Apple’s (AAPL) iPhone has popular buzz and Research in Motion (RIMM) is winning over mobile workers. ABI Research says RIM captured 44 percent of the North American smartphone market this spring, up from 33 percent a year ago. The gains came at the expense of Palm, which slid from 33 percent to 24 percent.

So how can the company turn things around?

The main thing Palm needs to do is finish overhauling its phone software. Though Palm sells phones that run Microsoft’s (MSFT) Windows Mobile software, Palm’s future depends on its ability to ship a new operating system that can smoothly run several programs at once, including software for playing music and video. Executives have said they’re building an OS based on the open-source Linux kernel.

The trouble is, it’s taking an awfully long time. Palm announced a year ago that it would be rolling out a new operating system, and the company has yet to release even a test version to developers. In fact, the company last month canceled its ill-conceived Foleo laptop project to focus its efforts on phone software, a sign that Palm programmers still have plenty of heavy lifting to do.

Software is so important because it’s the main thing that differentiates one phone from another. RIM’s BlackBerry is known for its easy-to-use e-mail delivery software, and Apple’s iPhone is known for its touch-controlled version of Mac OS X. As other software companies make useful new programs that work on top of the basic BlackBerry and iPhone software, they enhance the value of the devices, and increase the chance that consumers and businesses will pay a premium for them.

RE: Palm tries to rally against the iPhone

Responding to questions from New York Times correspondent John Markoff at a Churchill Club breakfast gathering Thursday morning, Colligan laughed off the idea that any company -- including the wildly popular Apple Computer -- could easily win customers in the finicky smart-phone sector.

"We've learned and struggled for a few years here figuring out how to make a decent phone," he said. "PC guys are not going to just figure this out. They're not going to just walk in.'"

RE: Palm tries to rally against the iPhone

PALM really needs to focus on HARDWARE also.

I really believe that palm has another thing it should improve: their hardware.

I agree that most of the future of palm depends on developing an innovating OS. No arguee on that. But I ask all palm users: wouldn't you buy a treo with 128 or 256 MB of Memory, 32 MB or more of DBCache, 2 MP or 3 MP camera, Bluetooth 2.0, Wi Fi, 320x320 or 320x480 Screen, perhaps an internal drive or HD like the LD, and 8 GB or more SDHC support, nice case, but same Palm OS 5.4.9?? The answer: I'll do it. Some of these features cannot be delivered mostly because of OS limitations and that's exactly one of the reasons the OS needs improvements...

People expect their smartphones to be more than simple phones. People expect smartphones to have better cameras, better memory, better functions (OS can do this), wireless connectivity (both Bluetooth and Wi Fi), office companions, better everything than most of simple phones. People expect that the more money they're spending on such a device translates on more everything. Why should I be buying an smartphone that has a VGA camera, 64 MB memory, being bigger and not having wi fi (680?), if I can buy a 1.3 MB or 2 MP camera, radio, expansion card support, media suport, both video and audio (like sony ericsson phones do) as a phone and maybe half of the first one's price?. Or better, why not the iPhone that has wi fi and all this but the radio and expansion card support (though it is an iPod also and has 8 GB memory)?. The answer: I can have better specs on my phone with the same money ($399 for both 680 and the iPhone)... and notice that the iphone has bad things also (not being unlocked and not accepting apps to be legally installed).

So.... yes, Palm needs to develop the best OS. But the final objective of this is their devices to have the specs people these days ask for they to have(if not ahead).

PDAnd as a recall, "PDA market is not going down, the thing is, people don't change their PDA because fresh new devices don't offer big and improved changes". Why should I be changing my tx for a 680 if I get an awful VGA camera and wouldn't have wi fi anymore?

Palm T2--LifeDrive--TX

RE: PALM really needs to focus on HARDWARE also.

"I’m sorry to say that I think you are missing a very important issue here, and it is that PALM needs to decide if it is a software or a hardware company. Very few companies can do both (Apple the most notable exception).

PALM has demostrated that it cannot do both. It had some innovative smartphone design with the early TREOs 600s and 700s, but they have taken an awful long time for new designs. Mainly because they have focused their resources on the new software. They are taking too long and are comming out with something that is not really INNOVATIVE, that is behind the curve in support from third parties, etc.

They need to refocus, on creating some new innovative designs and let someone else come up with the software. You mention Motorola and Samsung, and they are both using the software from Microsoft, they are no longer having to CREATE their own Smart OS. Actually RIM is having similar problems as far as incorporating new tech on their software platform.

More and more companies are going to have to realize that to be profitable and innovative, they will have to choose one side or the other, build software or build hardware. For PALM, at least as it stands now, it’s better to focus on new hardware (the new phone is gorgeous) and work with software partners to MAKE THINGS WORK RIGHT in their new phones. They know how to do this. They worked out a lot of the kinks that other hardware makers like Moto, Samsung and HTC could not on the Windows Mobile OS, because they know how SmartPhones should work.

jf: Interesting take, Carlos — and many in the industry would agree with you. I’d say, though, that it’s increasingly important for companies to offer both hardware and software if they want to both win customer loyalty and maintain decent profit margins. (That’s why Microsoft has gotten into hardware with the Xbox and Zune, and why Nintendo is the most profitable game maker in the business.) Chances are that if Palm decides to be just a hardware company, it will get steamrolled by larger competitors who can produce handsets at lower cost and offer broader distribution.

RE: PALM really needs to focus on HARDWARE also.

RE: PALM really needs to focus on HARDWARE also.

I don't think Apple intends to do software and hardware. I think they intend to do MONEY. When I look at the iPhone, I'm increasingly envisioning one of those automated milking pumps they attach to cows.

RE: Earth to Palm: memo from hp

Actually, it's 128 MB of RAM, not 64. The initial press releases were wrong. Also, that MiniUSB is actually USB On The Go, so it's both a USB Device and USB Host port. With the right power setup, you should be able to connect an external hard drive. Oh, and it has built-in video decoding. And a 2200 mAh standard battery.

Downside: Engadget made a mistake with the dates. That HP site perpetually says today's date plus two. Actual ship date is expected to be on or about the 22nd.

RE: Earth to Palm: memo from hp

They get the damn 500v ad wrong with their mis-spelling and their lack of Spain, they have a flash site for the Centro that has "Treo" on the device, later removed, and now you're saying they didn't even get the specs right!?

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